Quicken buys servicing rights to $34B in mortgages

DETROIT (AP) — Quicken Loans Inc. says it has bought the servicing rights to about $34 billion in mortgages from Ally Financial Inc.

Detroit-based Quicken said Thursday that the loans are non-delinquent Freddie Mac and Fannie Mae-backed mortgages that currently have higher-than-market interest rates that “could substantially benefit from refinancing.”

Quicken says the deal is expected to close in the second quarter following approvals from Fannie Mae and Freddie Mac.

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The company says the deal “will dramatically increase” Quicken’s mortgage servicing business, which had $90 billion in mortgages before the deal.

Detroit-based Ally Financial says the value of the mortgage servicing portfolio was about $280 million in January. Ally is a spinoff from General Motor’s former lending arm, GMAC.